GLP has closed its GLP Brazil Development Partners II (GLP BDP II) fund with BRL 2.63 billion (US$530 million ) of total equity commitments.
GLP said the fund is one of the largest ever logistics-focused funds in Latin America.
GLP BDP II will develop nine Class-A logistics parks in prime São Paulo submarkets, experiencing high demand for modern logistics facilities, driven by strong growth in e-commerce.
GLP BDP II’s investors are wholly owned subsidiaries of the Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPP Investments), with CPP Investments allocating BRL 1.04 billion (US$210 million) of equity, representing a 39.6% interest.
GLP BDP II is expected to reach BRL 5.2 billion (US$1.1 billion) in assets under management (AUM) when fully leveraged and invested.
The fund is seeded with strategically located sites approximately 30 kilometers from the city center, in submarkets in high demand by e-commerce companies for their proximity and access to greater São Paulo – one of the largest metropolitan populations in the Southern Hemisphere. The first completed project of GLP BDP II is 100% leased to one of the leading e-commerce companies in Latin America.
Ralf Wessel, Managing Director, Fund Management, GLP, said, “with a population of more than 200 million, Brazil is one of the most underserved logistics markets globally and one of the fastest-growing e-commerce markets in the world. This transaction builds-upon our market-leading business in Brazil and provides GLP an opportunity to expand our existing relationships with ADIA and CPP Investments. We are confident in the GLP BDP II strategy and delighted to announce its closing.”
“Logistics is emerging as a top performing real estate sector in Brazil, given the acceleration of e-commerce in city centres like São Paulo,” said Peter Ballon, Managing Director, Global Head of Real Estate, CPP Investments. “We expect the GLP BDP II developments to meet an existing market need for high-quality, well-located assets, and to perform well over the long term as demand for logistics facilities and same-day delivery continues to grow. We have a strong conviction in the sector globally, and in GLP’s ability to execute on behalf of the partners in Brazil.”
GLP is the logistics market leader in Brazil, with ~BRL 14 billion (~US$3.0 billion) in AUM, and GLP BDP II is the firm’s fourth Brazil-focused investment vehicle.